Reserve Bank of India has finalized the guidelines and norms for Bharat Bill Payment System (BBPS), which will enable every citizen to pay their different bills under the same window.
Thus, from now on, all you need to do is collect your electricity bill, phone bill, water bill, insurance premium, EMI for cars etc, visit your nearest Bharat Bill Payment Operating Units (BBPOUs), which is part of the BBPS network, and make all the payments at one single location.
The best part of this scheme is that ecommerce portals and online payment aggregators can also become part of this unified platform, and accept payments online.
As per the RBI norms: “The BBPS is an integrated bill payment system offering inter-operable and accessible bill payment service to customers through a network of agents, enabling multiple payment modes, and providing instant confirmation of payment,”
National Payment Corporation of India (NPCI) has been designated as the nodal authority, which will oversee and audit the payment procedures and allocation of BBPOUs. Any business entity or financial institution (section 25 company under the Companies Act 1956 ) with an annual turnover of Rs 100 crore or more and having experience of bill collection and payments can become part of this nation-wide platform and accept payments.
Earlier in the month of August, we had reported that RBI is formulating guidelines to implement this program nationwide, and had sought public opinion and suggestions for the same. Within 3 months, they have finalized the norms, and the platform is ready to roll from next year.
Last year, more than 3000 crore bills were generated from the top 20 Indian cities, amounting to Rs 6 lakh crore+ which was either paid by cash, check or online banking. Once BBPS is implemented, Government can keep an updated record of all transactions pertaining to bill payments, and can regularize the whole system. Additionally, only those bank consumers who have opted for online banking or use credit cards can pay their bills online from the comfort of their homes. With BBPS, all Indian citizens would be able to clear their bills, without visiting the respective offices.
Along with ecommerce portals and online payment platforms, all banks will operate as default Bharat Bill Payment Operating Units (BBPOUs), which will be treated as official operational units for accepting all payments.
Certainly an excellent initiative by the Government to assist large segments of un-banked / under-banked population in making their bill payments, without any hassles.
